Continuing the balance of trading at the end of 2024 earlier this week, gold prices continued to move slowly.
This is seen to continue the flat pattern throughout the past week that moved above the $2,600 price zone.
The US dollar currency, which is the driving factor for gold price changes, also showed dismal performance and did not show a clear direction towards the closing trade of 2024.
However, the potential for the US dollar to strengthen again after the signal from the December FOMC meeting could put pressure on gold.
Investors are closely watching the movement on the XAU/USD chart, which measures the value of gold against the US dollar after the yellow metal's significant fall during the reaction to the FOMC meeting.
After that, gold managed to hold above the 2600.00 level until the end of trading last week.
The price recovery pattern is seen to be limited with a limited attempt to rise below the 2640.00 level, seeing the movement remain in a small range.
Slow movement at the opening earlier this week, however, indicates the risk of further declines as prices hovered below the Moving Average 50 (MA50) resistance line on the 1-hour time frame of the XAU/USD chart as a bearish signal.
If prices decline lower below the 2600.00 level, investors should be prepared to expect further declines to new highs.
Overcoming the FOMC dip around 2580.00 will push prices to record a fresh 7-week low towards the next target around 2530.00.
Meanwhile, for expectations of a price increase, the 2650.00 to 2670.00 zone is the closest to be tested.
Breaking through this important zone could push gold prices back up to the 2720.00 high reached in early December.
